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dangina [55]
3 years ago
5

Elegance Bath Products, Inc. (EBP) makes a variety of ceramic sinks and tubs. EBP has just developed a line of sinks and tubs ma

de from a mixture of glass and ceramic. The sinks sell for $150 each and have variable costs of $80. The tubs sell for $600 and have variable cost of $450. The glass and ceramic sinks and tubs require the use of specialized molding equipment. The specialized molding equipment has 4,050 hours of capacity per year. A sink uses an average of 2 hours of specialized molding equipment time; a tub uses an average of 5 hours of specialized molding equipment time.Assume that EBP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should EBP produce?a.1,000b.500c.410d.675e.zero
Business
1 answer:
Arlecino [84]3 years ago
7 0

Answer:

C) 410 tubs

Explanation:

the contribution margin for sinks is $70 (= $150 - $80) and the contribution margin for tubs is $150 (= $600 - $450).

the molding equipment has 4,050 hours of capacity per year, so it can produce either 2,025 sinks or 810 tubs.

we can determine what product is more profitable if we determine a contribution margin per molding equipment usage ratio:

  • sink = $70 / 2 hours = $35 per hour
  • tub = $150 / 5 hours = $30 per hour

It is more profitable to produce sinks than tubs, but we can sell only 1,000 sinks per year, so even after we product the 1,000 sinks we will have spare molding equipment capacity which we can use to produce tubs.

The spare molding equipment capacity after producing sinks = 4,050 total hours - 2,000 hours used to produce sinks = 2,050 spare molding hours

We can produce 410 tubs (= 2,050 molding hours / 5 hours per tub)

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algol [13]

Answer:

Bank will hold Mary accountable supported the deceitful use of the cardboard is $500

Note: Bank can’t make Mary answerable for the complete stolen amount from her ATM, as she conversant the bank at intervals every week when the cardboard was stolen, during these circumstance if the bank is informed about the stolen ATM directly the client is accountable for $50 in losses, whereas if they inform when three days quantity raise to $500 in losses.

3 0
3 years ago
a firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years
Lyrx [107]

The payback period of the project is 3.3 years.

Payback period = initial investment/ annual cash flow

= 50,000/15,000

= 3.3 years.

The time period payback period refers to the amount of time it takes to get better the fee of an funding. surely put, it's miles the period of time an investment reaches a breakeven point. human beings and groups in particular invest their money to receives a commission again, which is why the payback length is so vital.

Payback period in capital budgeting refers back to the time required to recoup the budget expended in an funding, or to attain the ruin-even factor. for example, a $a thousand funding made at the start of 12 months 1 which again $500 at the quit of year 1 and year 2 respectively could have a two-year payback duration.

In simple terms, the payback period is calculated by dividing the cost of the funding via the annual coins waft till the cumulative coins flow is nice, that's the payback yr. Payback length is typically expressed in years.

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5 0
1 year ago
Executives at Southwestern Construction have noticed that the company's construction team in the Phoenix office is more efficien
zimovet [89]

Answer:

The correct answer is (B)

Explanation:

Information is a significant resource for any organization, and it must be utilized to realize positive changes and further benefit. To engage different team will help the organisation to discuss databases, reports, records, documents, budget summaries, methodology, arrangements and it also helps to understand what other team are doing to get better results and what other things should be done to achieve efficiency

5 0
3 years ago
Tore Company's records reveal the following information regarding its inventory. Beginning inventory was $100,000 at cost and 16
vodka [1.7K]

Answer:

$150,000

Explanation:

Ending inventory, the value of goods available for sale at the end of the accounting period, plays an important role in reporting the financial status of a company and can best be figured out using the equation,

Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold (or COGS)

Beginning Inventory = $160,000 in retail

Net purchases = $500,000 in retail +$10,000 Markups

Cost of goods sold = $500,000

So, End Inventory = 160,000+500,000+10,000-500,000

End Inventory = $150,000

4 0
3 years ago
The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light manufactures two different prod
Afina-wow [57]

Answer:

<u>Night Lights $ per unit  2.13</u>

<u>Desk Lamps $ per unit 8.50</u>

Explanation:

Determine total number of budgeted direct labour hours for the year

total number of budgeted direct labor hours for the year is calculated

= night lamp labor hours + desk lamp labor hours

= ( 60000 * 1/2 ) + ( 80000 * 2 )

= 30000 + 160000

= 190000

calculated the single plant wide factory overhead rate

factory overhead rate = total factory overhead / total number of budgeted unit

= 807500 / 190000

= 4.25 per labour hour

calculate factory overhead cost per each unit

night lamp = 4.25 * 1/2

= 2.13 per unit

desk lamp = 4.25 * 2

= 8.50 per unit

5 0
3 years ago
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